Short answer: Most states cap the APR that licensed lenders can charge on a personal loan. For a $2,000, two-year loan, 43 states plus Washington, D.C. set a cap, and the median cap is 34% APR, according to the National Consumer Law Center (NCLC, December 2025). Caps usually fall as the loan gets larger.
Before you accept a personal loan offer, check how its APR compares with the legal limit where you live. The table below lists the maximum APR for two sample loans in all 50 states and Washington, D.C., with the statute behind each figure and a link to each state’s financial regulator.
What is a personal loan rate cap?
A personal loan rate cap is the highest APR a state allows a licensed lender to charge on a loan of a given size and length. The cap usually comes from one of two kinds of law. A usury law sets a maximum interest rate for most loans in the state. A consumer lending law licenses installment lenders and sets the interest and fees they may charge. Many states use tiered caps that fall as the balance grows. Colorado, for example, allows 36% on the first $1,000, 21% on the amount from $1,000 to $3,000 and 15% on the rest, according to NCLC’s 2025 appendix of state lending laws. That is why one state can show two different caps in the table below.
All-in caps vs interest-only caps
Some caps count every fee, while others let lenders add fees on top of the interest rate. Connecticut and Illinois count all fees toward their 36% limits, including fees for so-called voluntary add-on products, NCLC reports. Kentucky caps interest at 36% but also allows a processing fee of up to 5% of the loan or $150, whichever is less. With that fee, NCLC puts Kentucky’s maximum APR on a $2,000, two-year loan at 42%. The table uses NCLC’s APR figures, which include the fees a lender may charge. When you check an offer, compare its annual percentage rate (APR), not its interest rate, with the cap. The APR is the yearly cost of the loan including most fees, and lenders must show it in the Truth in Lending disclosure.
Personal loan APR caps in all 50 states and D.C.
The table shows the highest APR a licensed non-bank lender may charge on two sample unsecured installment loans. The $2,000 column comes from NCLC’s 2025 report, with rates as of September 2025. The $10,000 column comes from NCLC’s fact sheet, where those rates are only current as of August 2023. Personal-Loan.com checked the current statute behind 11 states’ $10,000 figures on November 3, 2026. Those cells are marked, and three of them have changed since NCLC’s data. “No set cap” means a lender’s rates can be challenged only if a court finds them unconscionable, which NCLC describes as rates so high they shock the conscience.
| State | Max APR, $2,000 two-year loan (NCLC, Sept. 2025) | Max APR, $10,000 five-year loan (NCLC, Aug. 2023; see markers) | Statute (citation) | Regulator |
|---|---|---|---|---|
| Alabama | No set cap (unconscionability standard) | No set cap (unconscionability standard) (b) | Ala. Code §§ 5-18-15, 5-19-3(e) | State Banking Department |
| Alaska | 31% | 25% (b) | Alaska Stat. § 06.20.230(a) | Division of Banking and Securities |
| Arizona | 41% | 30% (b) | Ariz. Rev. Stat. §§ 6-632(A), 6-635(A)(4) | Department of Insurance and Financial Institutions |
| Arkansas | 17% | 17% (b) | Arkansas Constitution (17% cap) | Attorney General, Consumer Protection |
| California | 25% | No set cap (unconscionability standard) (a) | Cal. Fin. Code §§ 22303, 22305; § 22304.5 (loans of $2,500 to under $10,000) | Department of Financial Protection and Innovation |
| Colorado | 31% | 21% (b) | Colo. Rev. Stat. § 5-2-201(2) | Attorney General, Uniform Consumer Credit Code |
| Connecticut | 36% | 25% (a) | Conn. Gen. Stat. §§ 36a-555, 36a-558 | Department of Banking |
| Delaware | No cap | No cap (b) | Del. Code tit. 5, §§ 2229, 2237 | Office of the State Bank Commissioner |
| District of Columbia | 24% | 24% (b) | D.C. Code §§ 26-905, 28-3301(a) | Department of Insurance, Securities and Banking |
| Florida | 37% | About 36% (c) | Fla. Stat. § 516.031 | Office of Financial Regulation |
| Georgia | 32% | 60% (a) | Ga. Code §§ 7-3-11, 7-4-18 | Department of Banking and Finance |
| Hawaii | 31% | 24% (b) | Haw. Rev. Stat. §§ 412:9-301, 412:9-302 | Division of Financial Institutions |
| Idaho | No set cap (unconscionability standard) | No set cap (unconscionability standard) (b) | Idaho Code §§ 28-42-201(1), 28-45-106 | Department of Finance |
| Illinois | 36% | 36% (b) | 815 ILCS 123/15-5-5 | Department of Financial and Professional Regulation |
| Indiana | 40% | 26% (b) | Ind. Code §§ 24-4.5-3-201, 24-4.5-3-508 | Department of Financial Institutions |
| Iowa | 36% | 32% (b) | Iowa Admin. Code r. 187-15.13(3) | Division of Banking |
| Kansas | 38% | About 37% (c) | Kan. Stat. § 16a-2-401 | Office of the State Bank Commissioner |
| Kentucky | 42% | 30% (b) | Ky. Rev. Stat. §§ 286.4-530, 286.4-533(4) | Department of Financial Institutions |
| Louisiana | 38% | 27% (b) | La. Stat. §§ 9:3519, 9:3530 | Office of Financial Institutions |
| Maine | 30% | 18% (b) | Me. Stat. tit. 9-A, § 2-401(2) | Bureau of Consumer Credit Protection |
| Maryland | 30% | 25% (b) | Md. Code, Com. Law § 12-306(a)(6) | Office of Financial Regulation |
| Massachusetts | 24% | 20% (b) | Mass. Gen. Laws ch. 140, § 100; 209 CMR 26.01 | Division of Banks |
| Michigan | 30% | 27% (a) | Mich. Comp. Laws §§ 493.13, 445.1854 | Department of Insurance and Financial Services |
| Minnesota | 33% | 22% (b) | Minn. Stat. § 56.131 (incorporating § 47.59) | Department of Commerce |
| Mississippi | 59% | 26% (b) | Miss. Code §§ 75-67-181, 75-67-619 | Department of Banking and Consumer Finance |
| Missouri | No cap | No cap (b) | Mo. Rev. Stat. § 408.100 | Division of Finance |
| Montana | 36% | 36% (b) | Mont. Code § 32-5-301(1) | Division of Banking and Financial Institutions |
| Nebraska | 30% | 24% (b) | Neb. Rev. Stat. § 45-1024 | Department of Banking and Finance |
| Nevada | 40% | 40% (b) | Nev. Rev. Stat. §§ 604A.400, 604A.0703 | Financial Institutions Division |
| New Hampshire | 36% | 36% (b) | N.H. Rev. Stat. § 399-A:16(I) | Banking Department |
| New Jersey | 30% | 30% (b) | N.J. Stat. § 2C:21-19 | Department of Banking and Insurance |
| New Mexico | 36% | 36% (b) | N.M. Stat. § 58-15-17 | Financial Institutions Division |
| New York | 25% | 25% (a) | N.Y. Penal Law § 190.40 | Department of Financial Services |
| North Carolina | 35% | 29% (a) | N.C. Gen. Stat. § 53-176 | Office of the Commissioner of Banks |
| North Dakota | 36% | 36% (b) | N.D. Cent. Code § 13-04.1-09.3(1) | Department of Financial Institutions |
| Ohio | 31% | 26% (a) | Ohio Rev. Code §§ 1321.57, 1321.571 | Division of Financial Institutions |
| Oklahoma | 56% | 36% (d) | Okla. Stat. tit. 14A, §§ 3-508A, 3-508B | Department of Consumer Credit |
| Oregon | 36% | 36% (b) | Or. Rev. Stat. § 725.340(1)(a) | Division of Financial Regulation |
| Pennsylvania | 24% | 26% (b) | 7 P.S. § 6213 | Department of Banking and Securities |
| Rhode Island | 24% | 21% (b) | R.I. Gen. Laws § 19-14.2-8 | Department of Business Regulation, Banking |
| South Carolina | No set cap (unconscionability standard) | No set cap (unconscionability standard) (b) | S.C. Code §§ 37-3-201(2), 37-5-108 | State Board of Financial Institutions, Consumer Finance Division |
| South Dakota | 36% | 36% (b) | S.D. Codified Laws § 54-4-44 | Division of Banking |
| Tennessee | 49% | 36% interest plus fees (c) | Tenn. Code §§ 45-5-301, 45-5-401, 45-5-403 | Department of Financial Institutions |
| Texas | 37% | 27% (a) | Tex. Fin. Code § 342.201; 7 Tex. Admin. Code § 83.503 | Office of Consumer Credit Commissioner |
| Utah | No set cap (unconscionability standard) | No set cap (unconscionability standard) (b) | Utah Code §§ 70C-2-101, 70C-7-106 | Department of Financial Institutions |
| Vermont | 21% | 18% (b) | Vt. Stat. tit. 8, § 2230(a) | Department of Financial Regulation |
| Virginia | 50% | 36% (b) | Va. Code §§ 6.2-1817(A), 6.2-1818.3 | State Corporation Commission, Bureau of Financial Institutions |
| Washington | 29% | 27% (b) | Wash. Rev. Code § 31.04.105 | Department of Financial Institutions |
| West Virginia | 33% | 27% (b) | W. Va. Code § 46A-4-107(7) | Division of Financial Institutions |
| Wisconsin | No set cap (unconscionability standard) | No set cap (unconscionability standard) (b) | Wis. Stat. § 138.09(7)(bp), (k) | Department of Financial Institutions |
| Wyoming | 31% | 23% (b) | Wyo. Stat. § 40-14-310 | Division of Banking |
Sources: $2,000 column: National Consumer Law Center (NCLC), Predatory Installment Lending in the States (2025), published December 19, 2025, rates as of September 2025. $10,000 column: NCLC fact sheet, State APR Caps for $500, $2,000 and $10,000 Installment Loans (December 2025), rates as of August 2023; NCLC’s March 2024 report dates Oklahoma’s figure to February 2024. Statute citations: NCLC 2025, Appendix C, which lists the laws used for the $2,000 loan; a different section of the same law, or a different law, may govern larger loans. All figures are APRs including fees, for closed-end unsecured loans from licensed non-bank lenders, rounded to whole numbers. Open-end lines of credit may differ. Markers in the $10,000 column: (a) Personal-Loan.com checked the current statute on November 3, 2026, and it supports NCLC’s figure. (b) Not independently checked; NCLC’s August 2023 figure. (c) The law changed after NCLC’s data. Florida (Fla. Stat. § 516.031, 2026 version) now allows 36% on the first $10,000 plus a $25 fee; Kansas (Kan. Stat. § 16a-2-401, effective January 1, 2025) allows 36% plus a prepaid charge of up to 2% or $300, whichever is less; Tennessee (2025 Senate Bill 694, effective July 1, 2025) allows 36% on loans of $100 or more, plus charges under Tenn. Code § 45-5-403. The Florida and Kansas figures are Personal-Loan.com calculations from those statutes, using NCLC’s method (fees financed, 60 monthly payments). NCLC’s August 2023 figures were Florida 24%, Kansas 23% and Tennessee 28%. (d) Oklahoma’s cap moves with the federal funds rate (Okla. Stat. tit. 14A, § 3-508A), so the current maximum may differ from NCLC’s figure.
Which states have the highest caps, or no cap at all?
Seven states set no numeric cap on a $2,000 loan, and four allow 49% or more. Alabama, Idaho, South Carolina, Utah and Wisconsin rely only on an unconscionability standard for that loan, and Delaware and Missouri have no cap, according to NCLC’s 2025 report. Among states with a number, Mississippi allows 59%, Oklahoma 56%, Virginia 50% and Tennessee 49%. Tennessee’s figure rose from 43% after a 2025 law raised its interest rate limit, NCLC reports. For a $10,000 loan, NCLC’s 2023 data put Georgia highest at 60% and Nevada next at 40%. California joins the no-numeric-cap group at that size, because its 36%-plus-federal-funds-rate cap covers only loans from $2,500 to under $10,000 (Cal. Fin. Code § 22304.5).
Which states have the lowest caps?
Arkansas has the lowest cap in the country at 17%, set by its state constitution. For a $2,000 loan, the next lowest caps are Vermont at 21%; Washington, D.C., Massachusetts, Pennsylvania and Rhode Island at 24%; and California and New York at 25%, according to NCLC’s 2025 data. For a $10,000 loan, NCLC’s 2023 figures show Maine and Vermont at 18%, Massachusetts at 20%, and Colorado and Rhode Island at 21%. New York’s 25% limit comes from its criminal usury law (N.Y. Penal Law § 190.40), which applies to non-bank loans.
Do state rate caps apply to banks and online lenders?
State caps bind licensed non-bank lenders, but banks can often charge the rate allowed in their home state. Under the National Bank Act (12 U.S.C. § 85), a national bank may charge interest at the rate allowed by the state where the bank is located, even on loans to borrowers in other states. Section 27 of the Federal Deposit Insurance Act (12 U.S.C. § 1831d) gives state-chartered, FDIC-insured banks the same ability. This is often called rate exportation. Some online lenders market loans that a partner bank makes, and those loans may carry the bank’s home-state rate. So an offer above your state’s cap is not automatically illegal. It depends on who the lender of record is and how your state treats the arrangement. Connecticut, Maine and Washington have added rules aimed at loans routed through out-of-state banks, according to NCLC. If an offer looks higher than your state’s cap, ask your state regulator whether the lender is licensed there and which rules apply. This section is general information, not legal advice.
What is the federal 36% cap for servicemembers?
The Military Lending Act caps the Military APR at 36% on most consumer loans to active-duty servicemembers and their covered dependents. The rule, at 32 CFR 232.4(b), says a creditor may not charge a Military APR above 36% on covered consumer credit. The Military APR is broader than the standard APR. It includes finance charges, credit insurance premiums, add-on products and most fees, according to the Consumer Financial Protection Bureau (CFPB), and it covers most installment loans. Active-duty members of the National Guard and Reserve are included. If you are covered, compare any offer with both the 36% Military APR limit and your state’s cap in the table.
How can you check an offer against your state’s limit?
Compare the APR on the lender’s disclosure with your state’s cap for that loan size, then confirm the lender’s license.
- Find the APR on the Truth in Lending disclosure that comes with the offer. Use the APR, not the interest rate, because the APR includes most fees.
- Match the loan size and length. Caps change with loan size, and the table shows two sample loans. For other amounts, read the statute listed for your state or ask the regulator.
- Find the lender of record, the company named as the lender on the loan agreement. If it is a bank chartered in another state, rate exportation may apply.
- Confirm that the lender is licensed in your state. Your state regulator, linked in the table, can tell you.
- If the APR is above your state’s cap, or the lender is not licensed, contact your state regulator. You can also submit a complaint to the CFPB.
Personal-Loan.com is a free referral service, not a lender. APRs, fees and terms are set by each lender and vary by state, so check the APR in any offer before you accept it. Your credit score affects the APR you are offered; see what counts as a bad credit score for a personal loan and what lenders look for when you apply. If your credit is weak, read how bad credit loans are priced before you borrow, and check whether a credit union loan, a payment plan with the creditor or free nonprofit credit counseling would cost less. To see what a rate means in dollars, run the numbers in the personal loan calculator.
Personal loan rate cap FAQs
What is the maximum interest rate on a personal loan in my state?
Your state’s cap depends on the loan size; for a $2,000, two-year loan from a licensed non-bank lender, caps range from 17% in Arkansas to 59% in Mississippi, and seven states set no numeric cap, according to NCLC’s 2025 report. Find your state in the table above, then check the statute for your loan amount.
Is 36% APR legal on a personal loan?
In many states, yes, but not everywhere. For a $2,000 loan, 36% is within the limit in 28 states, where the cap is 36% or higher or there is no numeric cap, but it is above the cap in the other 22 states and D.C., including New York (25%), Pennsylvania (24%) and Arkansas (17%), according to NCLC’s 2025 data. For covered servicemembers and their dependents, 36% is also the federal ceiling under the Military Lending Act.
Can a lender charge more than my state’s cap?
A licensed non-bank lender generally cannot, but a bank may be able to. National banks and state-chartered, FDIC-insured banks can often charge the rate allowed in their home state (12 U.S.C. § 85 and § 1831d), including on loans arranged by online lenders. Federal law lets states opt out of the rule for state-chartered banks, and a few have done so. If an offer is above your state’s cap, ask your state regulator whether the lender is licensed and which law applies.
Does the rate cap include fees?
Some state caps include all fees and others do not. Connecticut and Illinois count all fees toward their 36% caps, while states such as Kentucky allow fees on top of the interest rate, according to NCLC. The figures in the table are APRs that include the fees each state allows, so compare them with the APR on your offer, not the interest rate.
Updated November 2026. Data: NCLC 2025 ($2,000 loan, rates as of September 2025) and NCLC fact sheet ($10,000 loan, rates as of August 2023), with 11 states’ $10,000 statutes checked by Personal-Loan.com on November 3, 2026. This page is general information, not financial or legal advice.